SEBI plans cash settlement for agri derivatives as position limits get eased

Published on 12 May 2026

Cash settlement is pitched as a temporary bridge

SEBI has proposed allowing cash settlement in agri derivatives and relaxing position limits to improve liquidity. The regulator stressed it is not a move away from physical settlement—cash will be used only as an interim measure. Caps and thresholds are set to depend on average daily traded volume and open interest, with an overall two-year limit from launch.

SEBI proposes cash settlement for agri derivatives to lift liquidity
Regulator says it remains committed to physical settlement
Position limits would be eased based on liquidity metrics
Cash settlement is intended only for an interim two-year window

#cash settlement #position limits #sebi #market liquidity #agri derivatives

Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic Times

SEBI plans cash settlement for agri derivatives as position limits get eased

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